In the long run, if the price firms receive for their output is below their average total costs of production, some firms will exit the market.

Question

Quizplus · Accepted Answer

If firms are consistently receiving prices below their average total cost of production, they will experience losses and may not be able to sustain their business in the long run. As a result, some firms may choose to exit the market in order to avoid further losses.

In the Long Run, If the Price Firms Receive for Their